Recent News & Blog / 2026 Cost of Living Adjustments
November 14, 2025
The IRS recently released the 2026 Cost of Living Adjustments for retirement plans and related items. These updates reflect changes designed to help individuals keep pace with inflation and maximize their savings opportunities.
Please note: while most of the final limits match the projected amounts released previously, everyone should be aware of two changes that were made:
- The catch-up for retirement plan participants aged 60-63 remained at $11,250 for 2026.
- The FICA wage amount for 2025 (to determine those subject to mandatory Roth catch-up provisions in 2026) was retroactively adjusted up to $150,000. The original legislation had set this amount to $145,000. This rule does not apply to those with self-employment income.
Use the chart below to view the adjustments, or view a printable version.
PLAN LIMITS
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Annual Deferral Limit
2026 2025 401(k)/403(b)/457/SARSEP $24,500 $23,500 SIMPLE Retirement Plans $17,000 $16,500 -
Catch-Up Contributions
2026 2025 Age 50+ 401(k)/403(b)*/457*
*A special additional catch-up limit applies for certain employees under 403(b) and 457 plans$8,000 $7,500 Age 50+ SIMPLE Plan $4,000 $3,500 **If your Plan permits and you turn 60-63 in 2026, the catch-up limit is $11,250 and $5,250, respectively. In the year you turn 64, the maximum catch-up returns to the regular dollar limit.
**Beginning in 2026, individuals who earned more than $150,000 in FICA wages in 2025 will be required to make catch-up contributions in Roth. -
415 Annual Limits
2026 2025 Defined Contribution Annual Limit $72,000 $70,000 Defined Benefit Maximum Annual Benefit $290,000 $280,000 -
Compensation Limit
2026 2025 For Determining Contributions for Non-Governmental Plans $360,000 $350,000 For Simplified Employee Pensions (SEP) Eligibility $800 $750 -
Highly Compensated Employee Definition
2026 2025 Highly Compensated Employee Definition $160,000 $160,000 -
Key Employee/Officer Definition
2026 2025 Key Employee/Officer Definition $235,000 $230,000 -
Social Security Taxable Wage Base
2026 2025 Social Security Taxable Wage Base $184,500 $176,100 -
Adjusted Gross Income (AGI) for Saver's Credit Eligibility
2026 2025 Joint $80,500 $79,000 Single $40,250 $39,500 Head of Household $60,375 $59,250 -
IRAs - Aggregate Amount to Traditional and Roth
2026 2025 Annual Contribution Limit $7,500 $7,000 Catch-Up Contributions $1,100 $1,000 Note: Federal income tax filing status and adjusted gross income determine deductibility of contributions to a traditional IRA and eligibility for contributions to a Roth IRA.
For additional limits and more information on the IRS Cost of Living Adjustments, visit www.IRS.gov.